Trump’s CFTC Shields His Family’s Prediction Market Partners From Prosecution
The CFTC is suing states to protect prediction markets, which have ties to the Trump family, from state prosecution.Summary
The Commodity Futures Trading Commission (CFTC) has filed a motion seeking to prevent Arizona from enforcing its state gambling laws on prediction markets, marking the first time the agency has sued a state. This action escalates a conflict where the CFTC asserts its exclusive federal authority over prediction markets, which it argues fall under the Commodity Exchange Act. The CFTC's move comes after Arizona filed criminal charges against Kalshi for alleged illegal gambling. Notably, several prediction market platforms, including Kalshi and Polymarket, have significant financial and advisory ties to the Trump family, with Donald Trump Jr. involved as a strategic advisor and investor. Other platforms like Truth Predict, partnered with Crypto.com, and Robinhood, serving as a trustee for Trump Accounts, also have connections to Trump's political activities and received cease-and-desist letters from the states now being sued by the CFTC. Critics argue the CFTC's lawsuits go beyond federal advocacy and aim to favor these prediction markets, while state officials like Connecticut Attorney General William Tong are pushing back, labeling the contracts as illegal gambling.
(Source：BeInCrypto)